HB450 Alabama 2014 Session

Updated Feb 26, 2026

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Summary

Primary Sponsor: Mike Hill
Republican
Session: Regular Session 2014
Title: Negotiating a worthless negotiable instrument, crime of, electronic drafts included, Sec. 13A-9-13.1 am'd.
Summary: HB450 adds electronic drafts to negotiable instruments and makes negotiating a worthless instrument a Class A misdemeanor in Alabama.
What This Bill Does
The bill expands the definition of negotiable instruments to include electronic drafts. It makes the act of negotiating a worthless instrument a Class A misdemeanor and outlines specific scenarios that can serve as prima facie evidence of intent that the instrument will not be honored (such as the maker/drawer having no account with the drawee, or payment being refused for lack of funds with required timeframes to pay after notice). It also clarifies notice requirements and that the bill does not trigger local-fund spending rules because it creates a new crime. The act becomes effective on the first day of the third month after it is passed and approved by the Governor.

Who It Affects
Makers/drawers of negotiable instruments (e.g., check writers) who could face criminal charges if they negotiate instruments that won't be honored.
Holders and financial institutions that deal with negotiable instruments and must handle payment refusals, notices, and related charges.

Key Provisions
Electronic drafts are included in the definition of negotiable instrument.
Negotiating a worthless negotiable instrument is defined as a Class A misdemeanor.
Prima facie evidence of intent that the instrument will not be honored can arise if: the maker/drawer had no account with the drawee; payment is refused for lack of funds and the amount due plus a service charge is not paid within the specified period after notice; or notice of payment refusal is mailed and returned undelivered.
The bill is exempt from Amendment 621 local-fund requirements because it creates a new crime.
Effective date: the first day of the third month after passage and Governor's approval.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Crimes and Offenses